Qualified Charitable Distributions (QCDs)

How to Incorporate QCDs in Scenario Analysis

Users can enter the amount of Qualified Charitable Distributions (QCDs) directly in a new pop-up in the "IRA Distributions Worksheet."

To access the worksheet, click on the file icon in the "IRA Distributions" field in the 1040 Income section of Scenario Analysis.





Users should enter the amount of any taxable IRA distributions in the top section of the worksheet, and any Qualified Charitable Distributions in the bottom section of the worksheet.

In the sample shown below, we've entered a taxable IRA distribution for Taxpayer 1 of $45,000, and a QCD of $20,000, for a total IRA distribution of $65,000.



Additionally, the worksheet will show you in real time the tax savings of a QCD compared to taking the same amount as a taxable distribution and making a comparable charitable deduction on Schedule A (a $2,822 savings in the above example).

Scenario Analysis now illustrates both the taxable distribution ($45,000) and the non-taxable QCD amount ($20,000) as seen below.